Sebi to auction properties of MPS group firms, 4 others to recover investors’ money To recover investors’ money, capital markets regulator Sebi on Monday said it will auction properties belonging to companies of MPS Group, Vibgyor Group, Prayag Group, Pailan Group and Multipurpose BIOS India Group on June 30 for a reserve price of nearly Rs 64 crore.These companies had raised funds from investors without complying with regulatory norms. The 20 properties put on the block, which include land parcels, storied buildings, an office space, a commercial space and a flat, are situated across West Bengal, the Securities and Exchange Board of India (Sebi) said in a notice. Inviting bids, Sebi said auction of the properties will be conducted through online mode on June 30 during 11 am to 1 pm. The regulator said the bidders should make their own independent enquiries regarding the encumbrances, title of properties put on auction and claims, among others, prior to submitting their bids.”The properties are being sold with all the existing and future encumbrances whether known or unknown to Sebi. Sebi shall not be responsible in any way for any third party claims/rights/dues, etc,” the notice said. Sebi had earlier attached some of their properties after directives asking them to refund investors’ money along with interest did not materialise. In this matter, the watchdog had also attached demat and bank accounts. MPS Group of companies includes MPS Greenery Developers that collected Rs 1,520 crore from investors through illegal Collective Investment Schemes (CIS). Vibgyor Allied Infrastructure had issued optionally fully convertible debentures to 49,562 investors in 2009 and raised Rs 61.76 crore, Pailan Group of companies had mopped-up Rs 83.42 crore by issuing non-convertible debentures to 23,685 persons between 2010-11 and 2014-15, Prayag Infotech had made an offer of redeemable preference between 2007-2008 and 2011-12 and mobilised at least Rs 131.37 crore from over 1.57 lakh investors, and Multi Purpose Bios collected Rs 5.97 crore from more than 1,460 people through redeemable preference shares between financial year 2007-08 and 2011-12.These four companies were engaged in fund mobilising activity through issue of securities to more than 49 persons without complying with the provisions of the Companies Act, 1956.
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)